Online games constitute a small but rapidly growing part of the overall gaming universe. Although largely disdained by serious gamers until recently, the online market has been gathering steam largely because of growing consumer interest in such basic, low-tech “casual” games as bingo, poker, puzzles, trivia and board games, as well as digital slot machines.

 

Source: Company reports, analyst estimates, 1/05

In particular, online casual games are hooking women over the age of 35, a far cry from the stereotypical young male that has always been seen as the industry’s target audience. As a result, the Yahoo and AOL advertiser-supported gaming sites each attract 10 million users per month while Electronic Arts’ Pogo site draws 14 million users a month.

At the same time, sales of online-capable video games surpassed $1 billion for the first time in 2003, up 167 percent from 2002, as both Xbox and PlayStation 2 made inroads in this area.

DFC Intelligence predicts that the worldwide market for online games will jump from $1.9 billion in 2003 to $9.8 billion in 2009, thanks largely to the growth of broadband.

In-Stat/MDR projects that the total online gaming market will nearly quadruple from just over $1 billion in 2003 to almost $4 billion by the end of 2008. While about a sixth of the U.S. population now plays games online, In-Stat estimates, that number will soar to nearly half the population over the next four years.

 

Source: Entertainment Software Association , 5/04